Indian aviation needs to make its own mistakes to flourish: CAPA

Mumbai, Sep 29 (UNI) The Centre for Asia Pacific Aviation (CAPA) today cautioned against India turning back the clock through increased regulation of aviation sector.

''The industry needs to find its own equilibrium. Market exit and consolidation is the global norm,'' said its executive chairman Peter Harbison while addressing delegates at third annual India and West Asian low cost airlines symposium.

His comments came a day after the government's move to put a temporary moratorium on new airline licences.

''I have one word of advice when it comes to preventing new airline entry -- Don't. It is vital for India's private airlines to find their own way to profit. Government intervention, unless there is a very clear and transparent framework, will very quickly undermine investor confidence. Not just in the airline industry, but also for airport investors and tourism infrastructure providers.'' Indian aviation's growth potential is far from being achieved and increased regulation will threaten to prematurely curb its development, he said.

''This is not a time for regulatory fine tuning. The adolescent market has become a young adult and needs to make its own market mistakes in order to flourish. Looking in the rear-view mirror is no solution for the future,'' said Mr Harbison.

The government's job is to create a regulatory framework and put institutional mechanisms in place so that market forces can play their role, he said.

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